The never-held-by-a-non-member requirement could be considered inappropriate if a debt were always held as intercompany debt in a predecessor group and came into the current group under
an exception that prevented triggering of all deferred gain or loss.
The parties in Alumax both assumed that this special transition rule was applicable, so that the only issue was whether Alumax could be treated as part of the Amax consolidated group under the 80-percent voting power test.(7)
The Tax Court rejected this argument, too, concluding that there were significant distinctions between the rights held by the Mitsui Group under the director objectionable action provision and the rights held by the holders of contingent rights in the authorities on which the taxpayers relied.
Indemnification clauses may require a group to reimburse a supplier for any loss the supplier suffers through a third party because of the actions of the group under
Finally, the need to allocate federal income tax to each subsidiary in the consolidated group under
the mandated complementary method, and to compare the allocation with the charge or credit for financial reporting purposes, will add to the burden of this recordkeeping requirement.
One item affecting the calculation of E&P is the allocation of Federal income tax among members of a consolidated group under
The alternative agents include (i) the common parent for all or part of the year to which the notice or waiver applies; (ii) the successor to the former common parent in a seciton 381 (a) transaction; (iii) the agent designated by the affiliated group under